ZeniMax Online Studios, the developer behind The Elder Scrolls Online, has seen significant leadership changes following a wave of layoffs at Xbox. Joseph Burba, who led the studio for 14 years and was promoted to studio lead in July of last year, is among over 200 employees cut from the ZeniMax Online team.

According to a report by Game File, other departing executives include ESO executive producer Susan Kath, game director Rich Lambert, and production director Ala Diaz. These individuals are expected to remain with the studio for a transition period of a few months to assist in establishing a new leadership structure. The forthcoming leadership will be headed by ESO game lead Nick Giacomini and business operations lead Josh Henderson.

An internal memo from the outgoing leadership expressed confidence in the new team and the future of The Elder Scrolls Online, stating, "With exciting experiences still ahead for our players as we wrap up work for Update 51 and beyond, we believe that your passion, creativity, and commitment to each other and the community will continue serving as the heartbeat of ESO."

The studio's workforce has notably decreased since late 2024, with its headcount reportedly around 461. Following layoffs in 2025 and 2026, ZeniMax Online Studios has lost at least 40% of its staff. The departure of long-serving executives like Burba represents a loss of considerable institutional knowledge, raising questions about how the studio plans to achieve further growth.

Despite the significant staff reductions impacting both ZeniMax Online Studios and the broader ZeniMax Media, which includes Bethesda Game Studios, the plan for The Elder Scrolls Online remains to continue delivering content. ESO community manager Kevin Gbolie indicated that an update on future content is anticipated soon. The total number of affected employees across ZeniMax Media was 379, with 213 from ZeniMax Online Studios and 166 from other ZeniMax Media divisions.